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Badri Munir Sukoco
Professor of the Faculty of Economics and Business
Airlangga University

Last month (4 May 2020), President Joko Widodo officially postponed the simultaneous Regional Head Elections (Pilkada) from September to December 2020. Even though Perppu 7/2020 has been signed, it is possible that the 2020 Pilkada will change again depending on the Covid-19 pandemic situation.

This simultaneous local election is certainly very strategic for Indonesia in the next 5 years, especially in supporting the achievement of the vision of the Advanced Indonesia Cabinet to get rid of . One of the focuses of its work program is to transform the Indonesian economy. Changing from dependence on natural resources to modern manufacturing and services that are competitive and have high added value.

So far, most of the issues raised by the candidates for regional heads still revolve around the figures carried and their supporting parties. The vision and work program are relatively not significantly different from the and the populist issues that were raised previously. If the simultaneous regional elections in 2020 have the same vision and work program, it is certain that the task of the Forward Indonesia Cabinet in achieving its vision will be even more difficult. This is because the simultaneous Pilkada will be followed by 270 regions (49,27% ​​of the total 548 regions), with details of 9 provinces (26,47%), 37 cities (37,76%), and 224 districts (53,85%). .

The question is π‘˜π‘’π‘π‘Žπ‘™π‘Ž , ?

𝐦𝐞𝐧𝐣𝐚𝐝𝐒

One city that is currently a reference for economic transformation is Pittsburgh in the United States. Since the late 1800s, the city has been known as a steel city (+300 steel mills). Many great entrepreneurs of the early 20th century were born, including Andrew Carnegie, one of the founding philanthropists of (CMU). When deindustrialization occurred in the 1970-1980s, the city lost its livable appeal.

But since the late 1990s, the city started its economic transformation by relying on the education sector with the CMU motor and (Pitt) which has great and . Other sectors that are the mainstay are the health sector and high technology. There are currently 6 500 -π‘π‘Žπ‘ π‘’ companies in Pittsburgh, more than 1.600 high-tech companies (including Google and GlaxoSmithKline) most of which were incubated by CMU. Currently, Pittsburgh has approximately 80.000 STEM-related employment positions, much higher than any other city where . absorbs the largest workforce, as many as 55.000 people with an income of +Rp. 150 trillion; as for Pitt himself has 10.700 employees with an operating budget of +Rp. 30 trillion by 2020. This is what makes Pittsburgh's per capita income since 2010 higher than the US national average.

𝐓𝐫 gulung

In the case of Pittsburgh, the existence of 2 world-class universities has a central role in transforming a steel city into a city focused on high value added industries. The high reputation of CMU (π‘‡π‘–π‘šπ‘’π‘  πΈπ‘‘π‘’π‘π‘Žπ‘‘π‘–π‘œπ‘› – THE WUR #27) and Pitt (#113) is a major attraction for the best talent to work in the city of Pittsburgh. In addition, the technology and tolerance offered by world-class universities facilitate the growth and development of and meet the 3T elements (π‘‘π‘Žπ‘™π‘’π‘›π‘‘π‘ , , –Florida, 2012) to transform the city of Pittsburgh.

It should be realized that local governments do not have all the necessary resources to transform their economies. Not only having world-class universities, but the involvement of various actors in the regional economic ecosystem is very important to carry out economic transformation. This is what underlies the importance of a transformation ecosystem, consisting of various actors who collaborate, compete and complement each other to grow dynamically over time.

In the journal , Talmar et al. (2020) proposed the ecosystem pie model (EPM). This model consists of 4 dimensions: (𝑅), (𝐴), -π‘Žπ‘‘π‘‘π‘’π‘‘ (𝑉𝐴), π‘£π‘Žπ‘™π‘’π‘’ (𝑉𝐢). For example, the ecosystem built by the city of Penang, one of the cities that has successfully transformed its economy since the early 2000s. Data from shows that more than 50% of foreign patients (a total of 1,2 million people in 2018) are from Indonesia. The total value of these health services in 2017 was +Rp. 4,14 trillion. Of all Indonesian patients, 60% of patients choose Penang as a place of treatment with the consideration of quality but affordable health services. The health services that they rely on are cardiology (the main target for Indonesian patients) and fertility (the main target for Chinese patients).

In building this health service ecosystem, it takes the involvement of universities (PT) that provide (both doctors and nurses), hospital managers, hotel managers, tourist attractions managers, airlines, Penang city government, and financial institutions (banks). The university's R is the latest in knowledge and technology in the health sector, and this is facilitated by the presence of the University Sains Malaysia - USM (QS WUR #165) in Penang. What is being done is conducting research and recruiting world-class specialist doctors and nurses. USM and other universities in Penang also offer VA by providing up-to-date research and on curable diseases. The income from the research and technology licenses used is the VC earned.

What is the role of the city government? The R owned is in the form of licensing rights for public services and providing subsidy funds from local taxes. One of the things that can be done is by synergizing all actors who play a role in the development of in Penang. As for the VA by establishing regional regulations by providing incentives in the form of tax free for 3 years. The VC obtained in the form of increased regional economic growth, per capita income, and the satisfaction index of urban residents will increase.

The same analysis was also carried out for other actors in this ecosystem. Of course, at the activity level, each actor can help each other to accelerate existing implementation. For example, managers of hospitals, hotels, tourist attractions, or airlines can ask for tax deductions if they are involved in this ecosystem, or PTs ask for facilitation from health service actors so that students who have internships or applied research are financed, and so on.

One of the regions that has succeeded in transforming the regional economy is Banyuwangi Regency. By making tourism a strategic sector, Regent Abdullah Azwar Anas was able to increase his per capita income from Rp. 20,8 million in 2010 to Rp. 48,7 million in 2018. This was followed by a decline in the poverty rate from double digits to 7 percent in the same period. Successful economic transformation occurs because of the involvement of interested actors (π‘ π‘‘π‘Žπ‘˜π‘’β„Žπ‘œπ‘™π‘‘π‘’π‘Ÿπ‘ ) accompanied by a well-planned tourism ecosystem design, as developed by Penang for medical tourism and Pittsburgh for education, health and high technology.

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At the national level, the President has determined that one of the focuses of his cabinet is economic transformation so that Indonesia is free from . Of course, this national policy needs to be followed by regional heads. The moment of the simultaneous regional elections in 2020 is very crucial, because almost 50% of regional heads change or continue their positions according to the people's choice. It's time for the people not only to be given choices that only highlight the figures of the candidates for regional heads or their supporting parties, but what economic transformation to bring so that the welfare of the population will increase.

Candidates for regional heads can use the EPM framework in planning their regional economic transformation and orchestrating it when elected later. The candidates for regional heads in the election campaign later can begin to introduce what strategic industries will be built if elected based on , , . Next, of course, develop the ecosystem design based on the EPM framework. It is hoped that the offered and promised in the campaign convince constituents of the need for regional economic transformation so that welfare increases significantly.

source: https://republika.co.id/berita/qc78cb2825000/pilkada-dan-transformasi-ekonomi

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